No wonder insiders panicked for the hills yesterday...
“The recent WCP modification work has resulted in a significant improvement in separation efficiency into the
valuable critical minerals – a great example of what the team has been able to achieve."... we were told WCP was producing on spec at 94% recovery and capable of operating at nameplate 3 months ago... so how is it now a significant improvement?
“Our focus remains on maximising revenue from the products being produced while continuing to optimise the MSP to produce Premium Grade Zircon and Rutile. The achievement of our first ZIC sale marks a key milestone in this process as we work to optimise the operation at the same time as increasing volumes.”... MSP was producing ilmenite in June, so 3 months and they still only producing ZIC which is basically the HMC less ilmenite and some mag trash.
"The key area of focus on mining operations has been increasing the utilisation of Dozer Mining Units (DMU’s) by reducing the constraints associated with sand tailings deposition and increasing equipment availability. The focus during the December quarter will be achieving more consistent operation of two DMU’s – which is required for nameplate production performance – along with implementation of both short- and long-term sand tailings storage strategies"... exactly the same problems as the June Qtr that were supposed to be either rectified or plans well in place to fix... little improvement basically
DFS nameplate was 240ktpa (60ktp Qtr) HMS years 1 & 2... so still running at 50% HMC nameplate. 6000t Ilm shipped by late August, another 5kt of Ilm produced over next month+ = 50% nameplate...
Sales revenue for Sep Qtr will be 6000t Ilmenite at ~US$250/t after quality discount (my guess) = $2.3 after selling costs/royalties plus $9M from 7.5kt HMS shipped in July... $11M revenue against what operating costs and csah out ??
Disasterous Qtr of basically no improvement, when they haven't moved any overburden and just moved into the thickest, easiest part of the deposit east of the plant yet still can't get DMU productivity. Tailings looks like the potential fatal flaw if they can't get mounding water to drop instead of rising as it is on the satellite... ater just won't drain away. Ei
(20min delay)